At a time when the real estate market is in the midst of the pandemic, Cidco’s offer could be a blessing for those seeking plots for bungalows, row houses, and major development over the next year. The planning agency is deciding to auction about 900 plots in a period of the next 12 months.
Plot auctioning is a profitable deal
Over one month the Cidco had earned nearly around Rs 1,100 crore from auction of residential plots. In February, it received a record rate of 2.63 lakh per square meter bid for a plot in Sanpada. The auction of residential plots in Navi Mumbai will help Cidco to raise significant funds. Thus assisting with its innovative and upcoming projects. Cidco aims to raise over Rs 400 crore in a month from the auctions of these plots.
In January, Cidco auctioned 26 plots for bungalows and a 66 sq mt plot in Ghansoli. And this generated a huge profit for Cidco. This auction brought in as much as Rs 1.30 lakh per sq mt, while the normal price for plot in Ghansoli ranged from 30,00 to 34,813 rupees per sq mt. Likewise, a plot of approx. 208 sq mt in New Panvel (E) sold for Rs 1.09 lakh per sq mt. However the base price for a plot in New Panvel was Rs 39,000 per sq m.
Cidco will now auction several plots in Navi Mumbai in the upcoming 12 months. During this period, approx. 1000 plots, of varying sizes from 40 sq mt to 4000 sq mt are expected to be offered. Of these, Cidco has reserved around 200 to 400 plots for Bungalows of varying areas from 30 to 400 sq mt. Officials from Cidco have said the largest plots ranging from 1,000 sq mt to 1 hectare are in demand by builders.
Benefit of Cidco Plots-
The plot bidding of Cidco offers several benefits and is good for various reasons. Plots with MMR titles are very few and are rarely available, however plots listed in the Cidco auction have clear ownership and MMR titles. MMR titles provide information related to the plots like when the plot was acquired, registration date, etc. Apart from this, different infrastructure projects are about to launch in Navi Mumbai which enhances the connectivity of this locality.
Sanjay Mukherjee, Cidco vice-chairman and managing director said. “Cidco about to bring out a large stock of small plots that need to be handed over to small real estate developers so, that they can enter the market in difficult times. Also, it is the best opportunity for a middle class to own a bungalow.”
Manohar Shroff, vice-president of MCHI-CREDAI Navi Mumbai unit, said. “The feedback of the auctions was good since Cidco has raised its ancillary FSI. Builders are pricing these plots high and offering larger homes. It is beneficial for CIDCO as well as builders.”